monopoliline

Monopoliline is a theoretical concept used to describe a market structure or policy framework in which a single firm exercises dominant market power along a linear dimension, such as a geographic corridor or a sequential product space. The idea combines elements of monopoly with a linear arrangement of markets, regions, or product variants. In the simplest formulation, the firm faces a continuous, decreasing demand along the line, often represented as P(x) = a − b x, where x indexes position along the corridor. The firm chooses prices or access terms to maximize profit, subject to regulatory constraints or the presence of substitutes that vary by position.

Variations include uniform pricing along the line, segment-by-segment price discrimination, or capacity-constrained monopolistic control, where marginal costs are relatively flat up to capacity then rise. Applications appear in thought experiments about utilities delivered along a corridor (electricity, gas, fiber networks), transportation routes, or product lines that are naturally organized along a sequence of locations.

Policy implications concern regulation to prevent exploitative pricing, access rights for competitors, and incentive schemes to promote efficiency and investment in the corridor. Critics argue that the model oversimplifies competition, network effects, and dynamic entry barriers, limiting realism for many industries.

See also: monopoly, natural monopoly, price discrimination, network economics, corridor infrastructure.